The bill mandates the Commissioner of Insurance Regulation to initiate a compact with other states by December 31, 2027, aimed at establishing a national risk pool for property insurance specifically for natural disasters. This initiative is intended to mitigate the financial risks associated with such disasters for the state of Florida and its residents. The Commissioner is required to enter into this compact with a minimum of 14 other member states as soon as feasible.

The effective date for this act is set for July 1, 2026. The bill emphasizes the importance of collaboration among states to create a more robust insurance framework that can better protect residents from the financial impacts of natural disasters.